Correlation Between InfuSystems Holdings and Arcadia Biosciences

Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings and Arcadia Biosciences at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining InfuSystems Holdings and Arcadia Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between InfuSystems Holdings and Arcadia Biosciences, you can compare the effects of market volatilities on InfuSystems Holdings and Arcadia Biosciences and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in InfuSystems Holdings with a short position of Arcadia Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and Arcadia Biosciences.

Diversification Opportunities for InfuSystems Holdings and Arcadia Biosciences

-0.72

Correlation Coefficient

InfuSystems Holdings  Arcadia Biosciences

Pay attention - limited upside

The 3 months correlation between InfuSystems and Arcadia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Arcadia Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcadia Biosciences and InfuSystems Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on InfuSystems Holdings are associated (or correlated) with Arcadia Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcadia Biosciences has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Arcadia Biosciences go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Arcadia Biosciences

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.09 times more return on investment than Arcadia Biosciences. However, InfuSystems Holdings is 1.09 times more volatile than Arcadia Biosciences. It trades about 0.22 of its potential returns per unit of risk. Arcadia Biosciences is currently generating about -0.09 per unit of risk. If you would invest  618.00  in InfuSystems Holdings on July 1, 2025 and sell it today you would earn a total of  416.00  from holding InfuSystems Holdings or generate 67.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

InfuSystems Holdings  vs.  Arcadia Biosciences

InfuSystems Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Arcadia Biosciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Arcadia Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with InfuSystems Holdings and Arcadia Biosciences

The main advantage of trading using opposite InfuSystems Holdings and Arcadia Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings position performs unexpectedly, Arcadia Biosciences can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arcadia Biosciences will offset losses from the drop in Arcadia Biosciences' long position.

The idea behind InfuSystems Holdings and Arcadia Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.